Travel Money

With overseas travel at record levels, the provision of travel money is proving ever more competitive - which is good news for the customer - potentially! The important thing is to find the best and cheapest way of obtaining your foreign money and avoiding any hidden charges. The main options are:

travellers cheques
obtain foreign currency in the UK
obtain currency at the airport
take sterling and change your cash in the destination country
use your credit/debit card for purchases

All these options have advantages and disadvantages

Travellers Cheques
Once the main way of taking money abroad, travellers cheques have fallen out of favour. Although more secure than cash, they work out to be a fairly expensive option. You have to find a bank at your destination who will swap your cheques for cash, and you cannot guarantee in advance what their exchange rate or commission charges will be. Most people will go for this option if security is paramount and cost is no object.

Changing Your Cash in the UK
Taking a lot of cash abroad is not a very secure way of doing things. In some countries, foreign tourists are easy prey for thieves and pickpockets. However the advantage is that you can work out the best deal in advance. There are many foreign currency providers, from high street banks to specialist bureaux de change and even the post office. Changing currency at the airport tends to be more expensive.

Exchange Rate. Look for who provides the best exchange rate for the currency you want. However, remember that exchange rates change on a daily basis.

Commission. Some charge a flat fee, others a percentage. Some charge no commission, but offer a less competitive exchange rate. Some charge a minimum fee which bumps up the cost of changing a small sum of money.

Delivery. Some providers such as Nationwide will only deliver to your door and add on a delivery charge - so you need to be available to accept delivery.

Credit/Debit Cards
Often the best option is to make purchases with your credit card or debit card in the currency of the place where you are (not cash advances though). Check carefully for any hidden charges. Some card issuers use an inflated exchange rate when converting to UK currency

Summary - there's no alternative but to look at all the options and work out which provider will suit you best, depending on the currency you need and the amount. Sites such as moneysupermarket.com provide a foreign currency comparison

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